Related Content

How China Hides Its Infrastructure Debt

12/6/2016 6:59AM

China's enormous infrastructure spending was often invoked as a model for the U.S. in the campaign speeches of President-Elect Donald Trump. But with debt piling up, Beijing must juggle ever-more furiously to maintain appearances. Photo: Getty

This transcript has been automatically generated and may not be 100% accurate.

which I use the airport ... the bridges ... that is so incredibly good of the candidate they like it ... they have railroad trades ago three hundred and fifty miles an hour ... and we have things to go to ... Joe Light from one hundred years ago boom goes from here is the rise of China ... and a market that modernization ... is transformed Chinese cities gains ... that lifted the economy by creating millions of jobs ... and demand for materials like cement and steel I ... move around ... its airports ... highways and railways and a ... hot potato ... business in China ... and they played more possible for the entire population ... in the structured debt is piling up ... China is increasingly juggling to keep up appearances ... I ... know Rob Cihra near the coast into Jiang province the city of winning is building up four hundred ft Harbour Bridge ... it's one part of a one point two billion dollar highway project and will consume four thousand tonnes of steel ... and ten thousand tonnes of cement ... eighty people work here ... to fund this and other new highways ... when the phone did something called ... in Industrial Fund ... traditionally local governments kept banks to fund projects ... but in industrials one adds new twists ... under one scenario ... the city and a bank for money to form a fun ... the funny get ownership of Indian dated city run business ... contracted to construction ... then the fund seeks investment from the public ... by promising a higher return ... that money pays for war ... like infrastructure construction ... the deal is supposed to pay for itself by creating economic growth ... but it's just a new way of borrowing ... and shifting risks to the public ... industrial funds are popping up all around China ... as a local and provincial governments team with state run banks and insurance companies to build ... the government calls is using social capital ... the people's money ... infrastructure construction has greatly benefited China ... requesting increasingly is ... how is it paying for the work and whether it's necessary ...